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A Hybrid Equity Release Plan for Retirement Financing

Author

Listed:
  • Kwong Koon-Shing
  • Tse Yiu-Kuen
  • Chay Junxing

    (School of Economics, Singapore ManagementUniversity, Singapore)

Abstract

There are two main equity release plans for retirement financing: reverse mortgage plan and home reversion plan. Both plans entitle the homeowners not only to release cash from their properties but also to allow them living there for life. In the lease buyback scheme (LBS) recently introduced in Singapore, the home owner sells the tail-end of the property lease to the government in exchange for a cash payment upfront. Unlike the two main equity release plans, the LBS only allows the owner to stay in the property for the front part of the lease but not for life.

Suggested Citation

  • Kwong Koon-Shing & Tse Yiu-Kuen & Chay Junxing, 2021. "A Hybrid Equity Release Plan for Retirement Financing," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 15(1), pages 1-24, January.
    • Handle: RePEc:bpj:apjrin:v:15:y:2021:i:1:p:24:n:3
    DOI: 10.1515/apjri-2019-0028
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    References listed on IDEAS

    as
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    6. Daniel Alai & Hua Chen & Daniel Cho & Katja Hanewald & Michael Sherris, 2014. "Developing Equity Release Markets: Risk Analysis for Reverse Mortgages and Home Reversions," North American Actuarial Journal, Taylor & Francis Journals, vol. 18(1), pages 217-241.
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